Provaris Energy, Uniper Global Commodities, and Norwegian Hydrogen Sign Hydrogen Supply Agreement

Energy companies Provaris Energy, Uniper Global Commodities, and Norwegian Hydrogen have recently inked a conditional term sheet for the supply, transport, and offtake of hydrogen from Nordics to North-Western Europe. This agreement lays the foundation for negotiating a binding hydrogen sale and purchase agreement (SPA) slated for June 2025.

Key Details of the Agreement

An annual volume of 42,500 tonnes per year of RFNBO-certified hydrogen is set to be delivered as gaseous compressed hydrogen using Provaris’ H2Neo carriers. RFNBO, which stands for renewable fuel of non-biological origin, signifies that the fuel was produced through an electrolysis process, using renewable electricity to split water into hydrogen and oxygen.

Uniper will act as the buyer of hydrogen at a predetermined fixed price and will oversee the receiving terminal in North-Western Europe for delivery. It is anticipated that cargo deliveries will commence in early 2029, with a minimum term of 10 years.

Provaris views the execution of the term sheet as a significant milestone under the memorandum of understanding (MoU) announced in August 2024. This development paves the way for continued collaboration on establishing hydrogen supply chains from Norway and other potential Nordic sites to import locations in North-Western Europe.

Collaborative Efforts for Hydrogen Supply

Provaris and Norwegian Hydrogen are working together on the supply of RFNBO-compliant hydrogen, which will be stored and transported using Provaris’ H2Neo carriers. Efforts are underway to identify preferred sites in the Nordics, including Norway and Finland.

Based on the proposed hydrogen volumes and shipping distance, the storage and shipping infrastructure of the supply chain using Provaris’ proprietary solutions will include H2Leo barge storage at the production site and H2Neo hydrogen carriers with individual storage capacities.

Uniper will be responsible for selecting and developing the import terminal, collaborating with Provaris to outline the necessary equipment for discharging the H2Neo carriers and connecting to the European Hydrogen Backbone for distribution to industrial sectors.

Comments from Key Figures

Martin Carolan, Provaris’ Managing Director and CEO, expressed his excitement about the collaboration’s progress, highlighting the significance of developing regional bulk-scale hydrogen supply chains within Europe using Provaris’ H2Neo compressed hydrogen carriers.

Jens Berge, Norwegian Hydrogen’s CEO, shared his enthusiasm for the tri-party collaboration, emphasizing the rewarding nature of seeing their efforts materialize into concrete and advanced stages.

Benedikt Messner, Senior Vice President – New Energies Origination at Uniper Global Commodities, spoke optimistically about the innovative transport concept by Provaris and its potential to connect commercially viable hydrogen supply locations with core markets.

Conclusion

The term sheet is subject to various conditions, including the negotiation and execution of a fully termed hydrogen SPA and obtaining all necessary approvals. The collaboration between Provaris Energy, Uniper Global Commodities, and Norwegian Hydrogen marks a significant step forward in advancing hydrogen supply chains and promoting sustainable energy practices in Europe.